Firm Obtains Trial Court Victory Sustaining Insurance Carrier Clients' Claims Against Underwriter of Project Finance Notes

The Firm obtained a trial court victory in Texas State Court in Harris County on behalf of AIG against Nomura Securities International, Inc. for claims under the Texas Securities Act. See American General Life Ins. Co., et al. v. Schahin Petroleo E Gas S.A. et al., Cause No. 2017-19016 (Tex. Dist. Harris Cty. Dec. 3, 2020). The Complaint alleges, among other things, that Nomura, as lead underwriter for project finance notes securing a deepwater drilling vessel, solicited the sale of the notes to AIG with offering documents that contained materially false and misleading facts by failing to, among other things, disclose a decade-long criminal conspiracy involving the Schahin Defendants, Petrobras, and Brazilian politicians.

Nomura moved for partial summary judgment contending that many of AIG’s claims as to Nomura’s misrepresentations and omissions in the offering documents were time barred under the Texas Securities Act. Following briefing and oral argument, Judge Lauren Reeder denied Nomura’s partial summary judgment motion in full. The case is continuing through the expert discovery phase and is set to proceed to trial in June 2021.